Speedway's planned resort complex is a 'game-changer'

Published: Sunday, February 10, 2013 at 5:30 a.m.

Last Modified: Sunday, February 10, 2013 at 11:51 p.m.

DAYTONA BEACH — Not too many years back, a night of motorsports racing pretty much consisted of plopping down on a hard seat, watching cars whip around in circles and going home after the checkered flag.

Not anymore. And like the companies behind Universal Orlando's CityWalk, California's L.A. Live and Chicago's Navy Pier, International Speedway Corp. gets that.

In an age when you can go to the Mall of America in Minnesota and enjoy everything from shopping and rides to an aquarium and a comedy club, Daytona International Speedway and parent company ISC are putting together plans to create their own tightly packed cluster of development designed to pull in the masses and entice them to stick around for hours or even days.

"It's the changing consumer," said Daytona International Speedway President Joie Chitwood III. "People used to do one thing and go home. Now it's a desire for more and more when you do something."

If the ISC Board of Directors gives the green light later this year, the Speedway project will bolt forward. The frontstretch grandstands and the areas around them that have been improved but never dramatically overhauled in their 54-year existence will draw from the wish lists of fans to create huge upgrades.

In the years to come, the open land around the track and vacant ISC property across the street will also fill in with hotels, restaurants, shops, movie theaters, bars, apartments and maybe — if they're legalized in Florida — casinos.

With the Speedway ready for some multimillion-dollar sprucing up, and the economy starting to hit its stride again, Chitwood and ISC Vice President of Corporate Development Brian Wilson said now's the time to take the home of the Daytona 500 into a new stratosphere.

'A TREMENDOUS IMPACT'

It might not all happen in one burst of development. Even Orlando's Disney World started with one theme park and three hotels, Chitwood pointed out.

The first phase is likely to be the grandstand overhaul, Chitwood has said. He's still putting together the proposal he'll take to the ISC board, but he said he'll likely suggest new seats throughout the frontstretch grandstands, a new tower that could house suites, a fourth level of seating stacked onto the nearly mile-long frontstretch and new concourses where fans could take a break from the track and mingle.

The next chapter for the track could also include a redesigned midway, upgraded concession areas, five new fan entrances, elevators and escalators, sleek metal panel screening added to the back of the frontstretch grandstands and more television screens for fans to see what's going on when they're moving around. Another idea being floated is extending the pedestrian bridge over International Speedway Boulevard so it connects more directly with the track.

Every inch of Speedway property gets used during the Daytona 500 and Rolex 24 race, so it's going to be a challenge to figure out how to add in new development and reconfigure what's usually there, Chitwood said. With the track swallowing about 180 acres of the site, some 300 acres are up for grabs for rethinking what can be added and moved.

If it all comes together, Daytona Beach Area Convention and Visitors Bureau President and CEO Jeff Hentz sees big things for the city.

"I think it'd be a tremendous impact," Hentz said. "It would almost create a destination within a destination. I think it would be a game changer with a capital G."

Hentz sees potential to tie a new and improved Speedway complex to other attractions in the city and the chance to draw international visitors more likely now to head to Orlando.

"We're grateful and lucky to have an organization like this willing to invest that kind of money," Hentz said. "That says to me they believe in our future."

Don Poor, director of the Ocean Center, said his facility and the beachside as a whole could get a good jolt from an explosion of development around the Speedway.

"There's something magical about a development like that," said Poor, who spent more than 20 years in Atlanta in convention center management and was CEO of an Atlanta-based travel marketing organization before coming to Daytona Beach in 2009.

FANS, PRESTIGE, PROFITS

The three main goals of the Speedway reincarnation appear to be keeping fans happy and heading for Daytona, paying proper homage to the mecca of the racing world and boosting profits for ISC and DIS. ISC's annual report, filed a few weeks ago, hits on those points.

"We compete for the consumers' discretionary dollar with other entertainment options such as concerts and other major sporting events, not just motorsports events," reads an excerpt of the report focused on capital improvements. "We remain convinced that our focus on driving incremental earnings by improving the fan experience will in time lead to increased ticket sales with better pricing power, growth in sponsorship and hospitality sales, continued growth in broadcast media rights fees agreements and greater potential to capture market share."

The report also notes that the evolution of sports facilities is ongoing, and if ISC doesn't keep up with consumer and corporate demands, the company risks losing market share to direct competitors and other forms of entertainment.

"The company never sits on its laurels," Chitwood said. "We're always competing. The minute you stop other opportunities will pass you by."

Poor agreed.

"I think these things never fully mature," Poor said. "You have to keep it fresh."

KANSAS CASINO DOING WELL

The scope and maybe even the feasibility of the project will depend on things such as the economy and the possible sale of ISC's Staten Island property, the report states.

ISC has a total of 13 tracks nationwide spread across 13,000 acres, and the company wants to use the land "smartly," said ISC's Wilson.

ISC took a leap into the world of creating a critical mass of entertainment with the Hollywood-themed casino that opened at its Kansas Speedway a year ago, as well as a high-end steak and seafood restaurant, four additional eateries and a sports bar that overlook the track there.

More new development could be added to ISC land around the Kansas track, Wilson said.

The annual report said the $300 million casino is "providing positive cash flow" to ISC that should be in the $15 million dollar range for the 2013 fiscal year.

An in-depth study on how to bring more tourists to Volusia County that was released less than two weeks ago included a section that discussed the money-making opportunities the Daytona 500 and its race fans offer to ISC and Daytona Beach.

When comparing tourists who come to town for the Daytona 500 with those who come for Bike Week, Biketoberfest and Easter, the study found the Daytona 500 draws the most affluent visitors. Bike Week had the least wealthy tourists, the study's report noted.

The report, done by Atlanta-based Strategic Advisory Group, said it appears more can be done to leverage the value of the Daytona 500.

The race that typically draws about 180,000 fans is the fifth-highest revenue-generating sporting event in the world, according to Forbes Magazine. The report also highlights it's the only event in the top five — which includes the Super Bowl and the World Cup — that occurs in the same location every year.

With nearly 70 percent of Daytona 500 attendees coming in from out of state, the study notes, there's opportunity for new hotels and restaurants to net visitors who wind up staying in surrounding cities.

While the Daytona project is still in the early stages, "We are in active discussions with potential developers and anchor tenants," Wilson said.

The success of the Kansas casino and restaurants also suggests new development around the Daytona track could stay busy year-round as well. With tourists coming to Daytona Beach year-round, Chitwood said he's not worried about new development sitting empty.

"It makes sense to marry these tourists to the new things they want," he said.

ISC HAS 'THE HORSEPOWER'

Dennis Speigel, owner of an Ohio-based company that has created theme parks, water parks, zoos, aquariums and museums in 50 countries, said more is better nowadays for entertainment centers.

"The more you can glom together with food, beverage, retail and entertainment the more opportunity you have to draw the masses to your area," he said.

Speigel, who as president of International Theme Park Services has overseen 500 projects, said the Speedway has good timing with its project.

"There has been some holding back because of the economy, but the leisure industry is in a growth spurt now," Speigel said.

Speigel said ISC has "the horsepower" to pull off the project, and his advice is for the company to study the entertainment market carefully, not overspend, bring in the right brands and phase things in over a couple of years.

"They're smart people," he said. "They'll get it right."

In addition to what pops up on the 480 acres around the Speedway and the 180 acres of ISC land on the north side of International Speedway Boulevard, more is likely to sprout nearby. That's been the experience of the 12-year-old Kansas Speedway, where several big-name stores, theaters, hotels and a minor league ballpark have all come to be since the track opened in 2001.

New development has also mushroomed around places such as the Green Bay Packer's Lambeau Field in Wisconsin, which has added a pub, pro shop and hall of fame to its property and is open 365 days a year now.

As the world center of racing in Daytona Beach gets ready to enter a new era, its leaders are dreaming big.

"In Daytona we want the best experience possible for a fan in America," Wilson said. "We think this is the best place to do it."

"The time is right," Chitwood said.

KEY SPEEDWEEKS DATES

Thursday: Media Day; cars hit the track for practice

Saturday: Sprint Cup Sprint Unlimited At Daytona, ARCA Lucas Oil 200

Feb. 17: Daytona 500 qualifying

Feb. 18: UNOH Battle At The Beach (short-track nationals)

Feb. 19: UNOH Battle At The Beach

Feb. 21: Sprint Cup Budweiser Duel

Feb. 22: Truck Series NextEra Energy Resources 250

Feb. 23: Nationwide Series DRIVE4COPD 300

Feb. 24: 55th annual Sprint Cup Daytona 500

TICKET INFO

To get all Speedweeks ticket options go online to daytona500.com or call the Speedway ticket office at 800-748-7467.

<p>DAYTONA BEACH &mdash; Not too many years back, a night of motorsports racing pretty much consisted of plopping down on a hard seat, watching cars whip around in circles and going home after the checkered flag. </p><p>Not anymore. And like the companies behind Universal Orlando's CityWalk, California's L.A. Live and Chicago's Navy Pier, International Speedway Corp. gets that. </p><p>In an age when you can go to the Mall of America in Minnesota and enjoy everything from shopping and rides to an aquarium and a comedy club, Daytona International Speedway and parent company ISC are putting together plans to create their own tightly packed cluster of development designed to pull in the masses and entice them to stick around for hours or even days. </p><p>"It's the changing consumer," said Daytona International Speedway President Joie Chitwood III. "People used to do one thing and go home. Now it's a desire for more and more when you do something." </p><p>If the ISC Board of Directors gives the green light later this year, the Speedway project will bolt forward. The frontstretch grandstands and the areas around them that have been improved but never dramatically overhauled in their 54-year existence will draw from the wish lists of fans to create huge upgrades. </p><p>In the years to come, the open land around the track and vacant ISC property across the street will also fill in with hotels, restaurants, shops, movie theaters, bars, apartments and maybe &mdash; if they're legalized in Florida &mdash; casinos. </p><p>With the Speedway ready for some multimillion-dollar sprucing up, and the economy starting to hit its stride again, Chitwood and ISC Vice President of Corporate Development Brian Wilson said now's the time to take the home of the Daytona 500 into a new stratosphere. </p><p><b> 'A TREMENDOUS IMPACT'</b> </p><p>It might not all happen in one burst of development. Even Orlando's Disney World started with one theme park and three hotels, Chitwood pointed out. </p><p>The first phase is likely to be the grandstand overhaul, Chitwood has said. He's still putting together the proposal he'll take to the ISC board, but he said he'll likely suggest new seats throughout the frontstretch grandstands, a new tower that could house suites, a fourth level of seating stacked onto the nearly mile-long frontstretch and new concourses where fans could take a break from the track and mingle. </p><p>The next chapter for the track could also include a redesigned midway, upgraded concession areas, five new fan entrances, elevators and escalators, sleek metal panel screening added to the back of the frontstretch grandstands and more television screens for fans to see what's going on when they're moving around. Another idea being floated is extending the pedestrian bridge over International Speedway Boulevard so it connects more directly with the track. </p><p>Every inch of Speedway property gets used during the Daytona 500 and Rolex 24 race, so it's going to be a challenge to figure out how to add in new development and reconfigure what's usually there, Chitwood said. With the track swallowing about 180 acres of the site, some 300 acres are up for grabs for rethinking what can be added and moved. </p><p>If it all comes together, Daytona Beach Area Convention and Visitors Bureau President and CEO Jeff Hentz sees big things for the city. </p><p>"I think it'd be a tremendous impact," Hentz said. "It would almost create a destination within a destination. I think it would be a game changer with a capital G." </p><p>Hentz sees potential to tie a new and improved Speedway complex to other attractions in the city and the chance to draw international visitors more likely now to head to Orlando. </p><p>"We're grateful and lucky to have an organization like this willing to invest that kind of money," Hentz said. "That says to me they believe in our future." </p><p>Don Poor, director of the Ocean Center, said his facility and the beachside as a whole could get a good jolt from an explosion of development around the Speedway. </p><p>"There's something magical about a development like that," said Poor, who spent more than 20 years in Atlanta in convention center management and was CEO of an Atlanta-based travel marketing organization before coming to Daytona Beach in 2009. </p><p><b>FANS, PRESTIGE, PROFITS</b> </p><p>The three main goals of the Speedway reincarnation appear to be keeping fans happy and heading for Daytona, paying proper homage to the mecca of the racing world and boosting profits for ISC and DIS. ISC's annual report, filed a few weeks ago, hits on those points. </p><p>"We compete for the consumers' discretionary dollar with other entertainment options such as concerts and other major sporting events, not just motorsports events," reads an excerpt of the report focused on capital improvements. "We remain convinced that our focus on driving incremental earnings by improving the fan experience will in time lead to increased ticket sales with better pricing power, growth in sponsorship and hospitality sales, continued growth in broadcast media rights fees agreements and greater potential to capture market share." </p><p>The report also notes that the evolution of sports facilities is ongoing, and if ISC doesn't keep up with consumer and corporate demands, the company risks losing market share to direct competitors and other forms of entertainment. </p><p>"The company never sits on its laurels," Chitwood said. "We're always competing. The minute you stop other opportunities will pass you by." </p><p>Poor agreed. </p><p>"I think these things never fully mature," Poor said. "You have to keep it fresh." </p><p><b>KANSAS CASINO DOING WELL</b> </p><p>The scope and maybe even the feasibility of the project will depend on things such as the economy and the possible sale of ISC's Staten Island property, the report states. </p><p>ISC has a total of 13 tracks nationwide spread across 13,000 acres, and the company wants to use the land "smartly," said ISC's Wilson. </p><p>ISC took a leap into the world of creating a critical mass of entertainment with the Hollywood-themed casino that opened at its Kansas Speedway a year ago, as well as a high-end steak and seafood restaurant, four additional eateries and a sports bar that overlook the track there. </p><p>More new development could be added to ISC land around the Kansas track, Wilson said. </p><p>The annual report said the $300 million casino is "providing positive cash flow" to ISC that should be in the $15 million dollar range for the 2013 fiscal year. </p><p>An in-depth study on how to bring more tourists to Volusia County that was released less than two weeks ago included a section that discussed the money-making opportunities the Daytona 500 and its race fans offer to ISC and Daytona Beach. </p><p>When comparing tourists who come to town for the Daytona 500 with those who come for Bike Week, Biketoberfest and Easter, the study found the Daytona 500 draws the most affluent visitors. Bike Week had the least wealthy tourists, the study's report noted. </p><p>The report, done by Atlanta-based Strategic Advisory Group, said it appears more can be done to leverage the value of the Daytona 500. </p><p>The race that typically draws about 180,000 fans is the fifth-highest revenue-generating sporting event in the world, according to Forbes Magazine. The report also highlights it's the only event in the top five &mdash; which includes the Super Bowl and the World Cup &mdash; that occurs in the same location every year. </p><p>With nearly 70 percent of Daytona 500 attendees coming in from out of state, the study notes, there's opportunity for new hotels and restaurants to net visitors who wind up staying in surrounding cities. </p><p>While the Daytona project is still in the early stages, "We are in active discussions with potential developers and anchor tenants," Wilson said. </p><p>The success of the Kansas casino and restaurants also suggests new development around the Daytona track could stay busy year-round as well. With tourists coming to Daytona Beach year-round, Chitwood said he's not worried about new development sitting empty. </p><p>"It makes sense to marry these tourists to the new things they want," he said. </p><p><b>ISC HAS 'THE HORSEPOWER'</b> </p><p>Dennis Speigel, owner of an Ohio-based company that has created theme parks, water parks, zoos, aquariums and museums in 50 countries, said more is better nowadays for entertainment centers. </p><p>"The more you can glom together with food, beverage, retail and entertainment the more opportunity you have to draw the masses to your area," he said. </p><p>Speigel, who as president of International Theme Park Services has overseen 500 projects, said the Speedway has good timing with its project. </p><p>"There has been some holding back because of the economy, but the leisure industry is in a growth spurt now," Speigel said. </p><p>Speigel said ISC has "the horsepower" to pull off the project, and his advice is for the company to study the entertainment market carefully, not overspend, bring in the right brands and phase things in over a couple of years. </p><p>"They're smart people," he said. "They'll get it right." </p><p>In addition to what pops up on the 480 acres around the Speedway and the 180 acres of ISC land on the north side of International Speedway Boulevard, more is likely to sprout nearby. That's been the experience of the 12-year-old Kansas Speedway, where several big-name stores, theaters, hotels and a minor league ballpark have all come to be since the track opened in 2001. </p><p>New development has also mushroomed around places such as the Green Bay Packer's Lambeau Field in Wisconsin, which has added a pub, pro shop and hall of fame to its property and is open 365 days a year now. </p><p>As the world center of racing in Daytona Beach gets ready to enter a new era, its leaders are dreaming big. </p><p>"In Daytona we want the best experience possible for a fan in America," Wilson said. "We think this is the best place to do it." </p><p>"The time is right," Chitwood said. </p><p> </p><p><b>KEY SPEEDWEEKS DATES</b> </p><p>Thursday: Media Day; cars hit the track for practice </p><p>Saturday: Sprint Cup Sprint Unlimited At Daytona, ARCA Lucas Oil 200 </p><p>Feb. 17: Daytona 500 qualifying </p><p>Feb. 18: UNOH Battle At The Beach (short-track nationals) </p><p>Feb. 19: UNOH Battle At The Beach </p><p>Feb. 21: Sprint Cup Budweiser Duel </p><p>Feb. 22: Truck Series NextEra Energy Resources 250 </p><p>Feb. 23: Nationwide Series DRIVE4COPD 300 </p><p>Feb. 24: 55th annual Sprint Cup Daytona 500 </p><p><b>TICKET INFO</b> </p><p>To get all Speedweeks ticket options go online to daytona500.com or call the Speedway ticket office at 800-748-7467.</p>